[Shaun Downey]

Connecting the Trading Time Studies for Low Risk Entry

This week we are going to look at and explain how some of the users of the studies from Trading Time connect the analysis together. For those who have attended my seminars they will know that there are four blocks to how I analyze and trade.

True measurements of Support and Resistance (M Profile)
True measurements of Overbought and oversold (Peak Oscillator)
Limits of range and the trend of the day (Range Deviation Pivots)
Limits of range and trend for the specific time of day (Volatility Time)

Today will look at a specific set up and how it enabled a low risk sell on Cable on Friday.

Firstly support and resistance. Fig 1 shows the report I wrote for I traders on Cable. The key point is the bank of resistance at 1.4580 to 1.4616. This took the distribution from the September highs as shown in Fig 2. This marks the beginnings of a old higher distribution.

Connecting this together is the daily chart that has Range Deviation Pivots. This study is based on the opening and has an inbuilt skew for trend, before placing 1, 2 and 3 deviations around that opening. The 3rd Pivot reflects the normalised extreme of range for the day and came in at 1.4579 or the beginning of Profile resistance.

Finally the last chart shows a 20 minute candle with Volatility Time Bands and the Peak Oscillator. Purple lines represents overbought and there was the very rare set up of a quadruple Peak Out. This highlights price at an extreme. More importantly the Volatility Time Band, which takes the time of day and then computes symmetrical deviations around the opening price, shows a limit of range for that time of day at 1.4604.

Therefore, we have a connection between support and resistance, overbought, the limit of Range for the day, and then the limit of range for that specific time of day. As I say, quiet rare but extremely powerful and a high probability day trade possibility.



Fig 1



Fig 2



Fig 3

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The Kase Peak Oscillator is part of the Statware studies.

[Shaun Downey]

Video blog can also be found here.